WEBVTT - BetMGM CEO Adam Greenblatt Talks Partnership

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news. This is Bloomberg Markets.

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<v Speaker 1>I'm Scarlett Food. It's time now for Stock of the

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<v Speaker 1>Hour and it's the two companies behind the joint venture

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<v Speaker 1>bet MGM, London based ent Tain and Las Vegas based

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<v Speaker 1>MGM Resorts International, both moving in opposite directions on the

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<v Speaker 1>eve of the new NFL season. Now, the American Gaming

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<v Speaker 1>Association projects a record thirty five billion dollars of bets

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<v Speaker 1>will be entered into legal sportsbooks this season. Bet MGM

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<v Speaker 1>aims to score a piece of that action. Bet MGM

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<v Speaker 1>CEO Adam green Black joins us now from Jersey City. Adam,

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<v Speaker 1>great to speak with you. College football has already begun,

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<v Speaker 1>and of course the NFL season will kick off tomorrow.

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<v Speaker 1>What can you tell us about the kinds and the

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<v Speaker 1>sizes of wagers that have already been placed before those

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<v Speaker 1>seasons both seasons really get underway.

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<v Speaker 2>Well, we've seen continued encouraging growth in the participation of

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<v Speaker 2>NFL wagering. We've seen strong double digit growth year on

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<v Speaker 2>your on NFL futures. For this season, we're offering over

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<v Speaker 2>one thousand different kinds of wagering opportunities on NFL futures,

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<v Speaker 2>and for every single pro game, we'll be offering four

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<v Speaker 2>hundred and fifty different kinds of events, different kinds of markets,

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<v Speaker 2>so a lot to choose from, more than ever before.

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<v Speaker 1>In fact, yeah, I mean those numbers are kind of stunning,

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<v Speaker 1>more than four hundred ways to bet on each football

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<v Speaker 1>game on the day of Can you be a little

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<v Speaker 1>more specific in telling us what new products you're offering

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<v Speaker 1>and introducing this year and how they're exclusive to bet MGM.

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<v Speaker 2>Absolutely, absolutely so. Over the last few months, we've been

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<v Speaker 2>working hard to integrate a sports pricing business called Angstrom,

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<v Speaker 2>which was acquired by Ententain, and so for the first

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<v Speaker 2>time this season, we're going to be bringing the power

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<v Speaker 2>of Angst to our players. And so the things that

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<v Speaker 2>are unlocked by that integration are parlay enhancements, easy to build,

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<v Speaker 2>same game parlays, same game parlay plus prepackaged parlays. We've

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<v Speaker 2>got some really interesting, i think consumer only at bet

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<v Speaker 2>MGM consumer offerings. So, for example, who's going to score

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<v Speaker 2>the first touchdown for the one PM slate of games? God,

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<v Speaker 2>that's quite something to kick off the afternoon.

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<v Speaker 1>Absolutely, so people will have their choice when it comes

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<v Speaker 1>time to it. You know, I think about your competition

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<v Speaker 1>and draftings. When they reported earnings last month, they said

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<v Speaker 1>they were experimenting with plans of imposing surcharges for customers

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<v Speaker 1>in high tax states like New York, like Illinois. Will

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<v Speaker 1>you be doing the same or is it more important

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<v Speaker 1>for bet MGM to gain market share by keeping customers

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<v Speaker 1>payouts higher?

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<v Speaker 2>Yeah, I think the latter At the moment. There's no

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<v Speaker 2>intent to pass on any tax taxes to players. There

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<v Speaker 2>are examples in foreign jurisdictions where that initiative, you know,

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<v Speaker 2>passing on texts to players has been rolled back. So

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<v Speaker 2>you know, what we really bias for is customer centricity,

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<v Speaker 2>and so our stance on text is consistent with that.

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<v Speaker 1>Got it? Got it. You've talked Adam about how twenty

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<v Speaker 1>twenty four is a year of investment, So I'd like

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<v Speaker 1>you to give us some color on what that means

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<v Speaker 1>and what that looks like. Where are you planning to

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<v Speaker 1>spend the most to acquire customers? Are you looking to

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<v Speaker 1>convince those who are on DraftKings or fan duel to

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<v Speaker 1>come over, or are you looking to grow the pie

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<v Speaker 1>through bet MGM. Just give us some sense of how

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<v Speaker 1>you're moving forward with that.

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<v Speaker 2>Yeah, for sure, investment in top line momentum is critical.

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<v Speaker 2>For twenty twenty four, we stated that that is our

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<v Speaker 2>intent both acquisition and retention. We've got tremendous partnerships with

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<v Speaker 2>the social media platform X, with Marriott, Bonvoy, and with

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<v Speaker 2>Associated Press. These are all exclusive to BETMGM. And we

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<v Speaker 2>also have our how to describe it a magic potion

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<v Speaker 2>in Nevada, unlocking the power of Nevada for BEDMGM.

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<v Speaker 1>We are.

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<v Speaker 2>We have an omni channel strategy as core to our

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<v Speaker 2>go to market proposition. We have recently rolled out our

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<v Speaker 2>best in class, certainly leadings sports app in Nevada and

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<v Speaker 2>also linked it with our single wallet framework, which means

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<v Speaker 2>that players from any of BEDMGM states can visit Nevada,

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<v Speaker 2>continue their betting experience with BEDMGM, and take that experience home.

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<v Speaker 2>And we're excited about the ability to grow our active

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<v Speaker 2>space our revenue base by using Nevada as the place

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<v Speaker 2>to acquire new players top line. Additionally, this year we've

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<v Speaker 2>got the first season for North Carolina, We've got a

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<v Speaker 2>district wide district wide sports betting in DC. Our market

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<v Speaker 2>has expanded as well as it being a market share game,

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<v Speaker 2>and we also look forward to Alberta, which has signaled

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<v Speaker 2>its regulation coming November or it's close to November as

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<v Speaker 2>they can manage, which will introduce another sports betting and

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<v Speaker 2>I gaming state.

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<v Speaker 1>So sports fans I think about, you know, watching a

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<v Speaker 1>game or going to a game for that matter, they're

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<v Speaker 1>bombarded with betting content. It's kind of everywhere they turn

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<v Speaker 1>in the physical space and on their screens as well.

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<v Speaker 1>And there are some serious questions on whether the marketing

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<v Speaker 1>campaigns have become oversaturated. So my question to you, Adam

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<v Speaker 1>is how do you build up awareness of bet MGM

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<v Speaker 1>without annoying or turning off potential customers.

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<v Speaker 2>That's an important question we have. Well, we're opting for

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<v Speaker 2>continuity this year for BETMGM. We've got a brand new

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<v Speaker 2>campaign headlined again by the one and only Jamie Fox,

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<v Speaker 2>and we're going to see him in a new cityuations

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<v Speaker 2>with new messages, but are always consistent with BETMGM as

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<v Speaker 2>a premium omni channel experience that is born in Vegas,

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<v Speaker 2>which is synonymous with hospitality and entertainment, and so we

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<v Speaker 2>seek to separate ourselves based on that positioning.

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<v Speaker 1>So another word is doubling down on your Vegas rus

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<v Speaker 1>appreciate it, Adam, thank you so much. Adam Greenblatt is

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<v Speaker 1>CEO of BET MGM,